Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286156 
Title (translated): 
Decomposing the effect of public spending on the real exchange rate: An approximation to the Colombian case
Year of Publication: 
2019
Citation: 
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 27 [Year:] 2019 [Pages:] 91-114
Publisher: 
Universidad Pablo de Olavide, Sevilla
Abstract (Translated): 
This paper studies the relation between government spending composition and long-run behavior of Colombian real Exchange rate given the recomposition since 2004 from public consumption to public investment. Our results suggest that empirical models work better when the relative price of non-tradables is used as a measure of the real Exchange rate instead of an index based on the purchasing power parity. Besides, there is evidence that real exchange rate behavior is mainly explained by supply side factors and that without the recomposition, expected real Exchange rate would have been close to the observed one.
Subjects: 
government spending
real exchange rate
relative price of non-tradables
misalignment
Balassa-Samuelson
JEL: 
F41
E62
C32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.